Open banking in the UK had significant achievements in 2024, but challenges loom.
- The sector reached a record high for payments and completed its roadmap this year.
- Despite growth to 11.3 million users by July, regulatory issues persist.
- Variable Recurring Payments (VRP) for personal accounts have been implemented, but commercial VRP lags.
- The National Payments Vision provides hope, yet decisive action is essential for progress.
In 2024, the UK’s open banking sector demonstrated notable progress, achieving a record high for payments in January and completing the open banking roadmap. This culminated in reaching 11.3 million users by July, which was a 12% monthly increase and double the user base from 2022.
Despite these achievements, the sector faces several challenges. One major issue is the congestion in its regulatory landscape, which has hindered swift progress. As the industry enters 2025, many questions remain unanswered, particularly concerning regulatory clarity and direction.
One of the key developments has been the rollout of Variable Recurring Payments (VRP) across CMA9 banks for transactions within a person’s accounts. However, commercial applications of VRP have not seen similar traction, as the integration of this capability into APIs by banks is not yet mandated.
The publication of the National Payments Vision has offered some direction, yet the need for bold and decisive regulatory actions is evident. Stakeholders within the industry are hopeful that regulators will soon mandate banks to adopt commercial VRP to unleash its full potential.
To advance open banking further in 2025, clear regulatory actions must be taken to address existing challenges.
